All of the Following Are True About the Length of Product

question 268

Multiple Choice

All of the following are true about the length of product life cycles except which?

• A)The length of service life cycles is typically longer than those for tangible products.
• B)There is no set time that a product takes to move through its life cycle.
• C)Technological change shortens product life cycles as new products replace existing ones.
• D)The use of mass media tends to shorten product life cycles.
• E)Consumer products have shorter life cycles than business products.

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, holding the consumer's utility level constant.

Income Effect

The modification of income for people or economies and how this adjustment affects their purchasing desires for goods or services.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, typically because consumers can afford better alternatives.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another more or less expensive good.